THE EFFECT OF PRICE HARMONIZATION ON PROFITABILITY OF SELECTED BANKS IN CROSS RIVER STATE, NIGERIA

Article Author:Beredugo, Sunny Biobele, Etuk, Aniebet Johnny

Abstract

This research evaluated the extent to which price harmonization affects companies’ profitability level and to know if there was a significant difference between price discrimination and price harmonization on companies’ profitability. Survey research design was adopted to elicit data from 274 respondents of five Commercial Banks in Calabar, Cross River State Nigeria. Correlation coefficient and independent t-test were used for the hypothetical tests. The findings revealed that, price harmonization significantly affects companies’ profitability level and, there was a significant difference between price discrimination and price harmonization on profit of the selected firms; in that, where consumers’ resentments abound, price discrimination might increase profit in the interim, but would pose the organization as an exploiter leading to customers desertions in the long run; whereas, with the adoption of price harmonization, the organization will be doing something nobler and would invoke increased patronage and maximize the present value of future cash flows.